BANK INTERVIEW QUESTION

1. What is bank?

Ans. Bank is financial institution which accepts deposits from the public for the purpose
of lending.

2. Types of banks?

Ans. Nationalized banks, Private Banks, Foreign banks, Regional rural banks, Cooperative banks, Industrial banks etc..,

3. What is a nationalized bank?

Ans. Banks which are owned and run by government of India are called as nationalized
banks. There are total 20 nationalized banks. State bank of India has got 7 subsidiaries
they are State bank of Hyderabad, State bank of Mysore, State bank of Travancore,
State bank of Indore, State bank of Sourashtra, State bank of Bikaner, state bank of
Jaipur.

4. When banks are nationalized?

Ans. In 1969: 14 banks were nationalized.

In 1980: 6 banks were nationalized.

5. What is a Private bank?

Ans. Banks which are owned and run by individuals are called private banks.

6. What are foreign banks?

BANK INTERVIEW QUESTION

Ans. Banks which are foreign originated [based] are called foreign banks

7. What is RBI [Reserve Bank of India], when it is established and what are its functions?

Ans.: RBI established in 1935, its head office in Mumbai. Present Governor of RBI D.
Subba Rao.

Its functions:

1. Issues currency notes

2. Acts as bankers bank
3. Maintains foreign exchange reserves
4. Maintains CRR and SLR

RBI is also called as "bankers bank", because all banks will have a/c's with RBI. It
provides funds to all banks hence it is called as BANKERS BANK.

8. What is RRB'S (regional rural banks)?

Ans. Main purpose of RRBs is to improve banking habit in rural areas and save formers
from money lenders.

RRBs works under supervision of NABARD (National Bank for Agriculture and Rural
Development)

NABARD head office is at MUMBAI.

9. What are co-operative banks?

BANK INTERVIEW QUESTION

Ans. The main purpose of co-operative banks is to co-operate small scale industries, and
to provide small loans.

10. What are industrial banks?

Ans. The main purpose of industrial banks is to provide big loans to large scale
industries.

11. Types of accounts in banks?

Ans. Savings bank account [SB a/c]: The main purpose of SB a/c is to encourage small
savings from the public. Interest paid on SB a/c is 3 percent. Any individual can open SB
a/c. An Indian residing at abroad can open a NRI a/c. NRI represents non-resident
Indians.

Current account: Its a running and active account. No interest is paid on current a/c.

Current accounts can be opened on firm names. Even individuals can also open current
a/cs. But on firm names you cannot open SB a/c

Fixed Deposit account: Amount is kept for a fixed period. Higher rate of interest will be
paid on this a/c.

Recurring deposit [RD a/c]: A fixed amount can be deposited in monthly installments.
Interest rate is same as fixed deposits.

12. What is Cheque?

BANK INTERVIEW QUESTION

Ans. Cheque is a negotiable instrument containing conditional order to pay sum of

money to the person mentioned on it or to the bearer of the instrument.

13. What is crossing?

Ans. Two parallel lines drawn on the top left corner of the cheque.

14. What is account payee cheque?

Ans. Account payee cheques can be routed only through accounts.

15. What is a post dated cheque?

Ans. The date on the cheque beyond todays date then cheque becomes post dated.

16. What is stale cheque?

Ans. Cheque is valid for six months. If the date on the cheque is before six months, then
the cheque becomes stale cheque.

17. What is a mutilated cheque?

Ans. It is a damaged cheque.

18. What is At Par cheque?

Ans. It is payable anywhere in India.

19. What is Multi city cheque?

BANK INTERVIEW QUESTION

Ans. A cheque which is payable in any branch of a particular bank

20. What is Repo rate?

Ans. The rate at which RBI lends money to other banks

21. What is Reverse Repo rate?

Ans. Repo rate is the rate at which the central bank of a country (Reserve Bank of India
in case of India) lends money to commercial banks in the event of any shortfall of funds.
Repo rate is used by monetary authorities to control inflation.

22. Which bank is called as Central bank?

Ans. RBI is also called as Central bank.

23. What is Internet banking?

Ans. Banking through internet is called Internet banking.

24. What is Inflation?

Ans. It is a state where money looses the value hence prices will go up (or) Decreasing
the value of money.

25. What is Deflation?

BANK INTERVIEW QUESTION

Ans. It is opposite to inflation. Money will have more value. Here the product looses the
value.

26. What is Debit cum ATM card?

Ans. The customer can deposit and withdraw cash by means of magnetic ATM card.

27. What is ATM?

Ans. Automatic Teller Machine

28. What are PLR and BPLR?

Ans. PLR - Prime Lending Rate

BPLR - Basic Prime Lending Rate

29. What is Credit card?

Ans. Credit card is a plastic instrument that can be used for the purchase of goods and
services. You can buy the services and then pay the cash to the bank. Limits will be fixed
based on the net worth of the customer.

Leading credit cards: VISA, MASTER.

30. What is an NRI a/c?

Ans. NRI stands for Non Resident Indian. An Indian who is residing in abroad can open
an SB a/c in Indian banks. These accounts are called NRI a/cs.

BANK INTERVIEW QUESTION

31. What are CRR and SLR?

Ans. CRR: Cash Reserve Ratio It is the ratio of physical cash that every bank has to
keep with RBI.

SLR: Statutory Liquidity Ratio It is the ratio of liquid assets that every bank has to
keep with RBI.

32. What are RTGS and NEFT?

Ans. RTGS: Real Time Gross Settlement.

NEFT: National Electronic Fund Transfer.

These two are the two methods through which funds can be transferred from one bank
to another bank.

33. What is NPA?

Ans. NPA: Non Performing Asset: When a loan becomes bad then it becomes NPA.

34. What is online banking?

Ans. Online banking (or Internet banking or E-banking) allows customers of a financial
institution to conduct financial transactions on a secured website operated by the
institution, which can be a retail bank, virtual bank, credit union or building society.